Advertising supply chain emissions account for 5% of business footprints
A whitepaper from Ad Net Zero Australia indicates that advertising accounts for over 5% of business supply chain emissions. The report advocates for shifting from spend-based to activity-based measurement to identify and reduce carbon-intensive inefficiencies in ad tech and media delivery without sacrificing campaign performance.
Key Takeaways
- SBS reduced its marketing share of Scope 3 emissions from 6% to 3% by integrating activity-based data
- Australian Ethical achieved an 82% reduction in emissions per thousand impacts for out-of-home campaigns
- Marketers are warned that spend-based reporting creates budget risks as mandatory AASB S2 climate reporting increases board scrutiny
- Activity-based measurement allows for carbon reduction by eliminating wasted impressions and server energy without cutting media spend
Why It Matters
The shift toward activity-based measurement signals a move away from treating marketing as an immaterial environmental factor. For the streaming and digital media ecosystem, this necessitates a granular audit of the programmatic supply chain, where redundant server calls and wasted impressions now represent both financial and climate liabilities. As corporate boards integrate sustainability into investor relations, ad tech vendors will likely face increased pressure to provide transparent, real-time energy consumption data. Watch for the adoption of standardized activity-based metrics across major Australian media buyers to replace generic spend-based carbon calculators by 2027.
Additional Context
Ad Net Zero has expanded its measurement framework beyond Australia's borders, positioning itself as a global standard-setter for advertising carbon accounting. In March 2026, Ad Net Zero launched its operations in the United States with support from major agency holding companies, bringing its activity-based carbon measurement methodology to the world's largest ad market. The initiative, originally founded in the UK in 2020, now operates across four markets and has secured commitments from agencies representing the majority of global media spend. This international expansion means the Australian whitepaper's findings on supply chain emissions carry weight well beyond the domestic market, as the same measurement gaps likely exist in US and European programmatic ecosystems.
The regulatory and business pressure around advertising emissions is intensifying as corporate sustainability reporting requirements tighten. In June 2026, the International Sustainability Standards Board finalized guidance requiring companies to disclose Scope 3 emissions from purchased services, including media and advertising, which directly encompasses the ad tech supply chain. Meanwhile, oOh!media published its first independently verified Scope 3 inventory covering digital out-of-home energy consumption in early 2026, becoming one of the first Australian media owners to do so. JCDecaux has similarly committed to science-based targets that include downstream emissions from client campaigns, signaling that media owners are beginning to treat energy transparency as a competitive differentiator rather than a compliance burden.
On the technical side, the shift from spend-based to activity-based measurement requires granular data from every node in the programmatic chain. A 2025 study by Cedara found that a single programmatic impression can generate between 0.3 and 1.2 grams of CO2 equivalent depending on the number of intermediaries in the bid chain, meaning that reducing supply path length directly cuts emissions alongside cost. Ad Net Zero's methodology assigns carbon intensity factors to specific ad formats, delivery mechanisms, and device types rather than applying a flat rate per dollar spent. This approach mirrors what 2XE, the Australian carbon measurement firm behind the whitepaper's technical framework, has applied to logistics and manufacturing supply chains, where activity-based accounting revealed that 30% of measured emissions came from fewer than 5% of operational activities, suggesting similar concentration effects likely exist in ad delivery.
Read full article at adnews.com.au
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